How To Make a Realistic, Successful Nonprofit Grant Request?

Dear Charity Clairity,

I’ve been working in annual giving and have recently been asked to help us diversify our funding by applying for grants. We have a handful of foundation funders currently. I need to reach out to them for renewed or increased support, and also find us at least as many new supporters. I’m starting to research funders, but am really not sure what a realistic ask amount might be for any of them. I could use a few pointers!

— Feeling at Sea

Dear Feeling at Sea,

It’s definitely scary when you’re dumped in the deep end without having first been given swim lessons! So, let’s go back to the shallow end for a minute and start at the beginning.

What to consider when asking for a nonprofit grant

The realistic ask amount depends on a number of factors, including the prospective funder’s mission, giving history, current giving focus and capacity, and your own organization’s relationships and past history with grant seeking and reporting.

Your organization’s grant history

If you have a history of receiving grants, and a reputation for excellent reporting and follow-through, you’ll be in a position to ask for more than if you’re a newbie.

Why? Because the foundation of grantmaking, and all philanthropic relationships, is trust. Foundations talk to one another. If you submit a proposal to Foundation C, and they see you’ve been funded in the past by Foundations A and B, they’re likely to contact A and B to find out a bit about their experience with you.

Your current funders can serve as “social proof” that you’re a good investment.

But what if you have little grant history?

Your organization’s community relationships

Your lay leaders can also offer social proof and put in a good word for you.

That’s why it’s useful to send a list of funders to whom you’d like to apply, complete with names of foundation staff leadership and trustees, to all your board members. Ask them to indicate if they know anyone on the list–and whether they’d be willing to reach out on your behalf.

Fruitful fundraising relies heavily on relationships and, when you have one, you’ve got a stronger likelihood of success.

But you can’t capitalize on relationships unless you know they exist! So, make it your business to find out.

The cost of the project for which you’re applying

Begin with clarity on your needs.

Sit down with program staff and interview them about everything that will be required–direct and indirect costs. Management, line staff, administrative support, supplies, travel expenses, and marketing, rent, utilities, insurance–you name it. Always include a percentage for overhead. It makes no sense to ask for less than you realistically need.

Sit down with finance staff for help crafting a budget. The budget is a microcosm of the entire proposal. In fact, often, the budget is the first thing a funder will look at in evaluating your proposal.

Generally, budget line items should include:

• Your project’s direct and indirect expenses
• How much you’re asking from this funder
• How much you’re asking from other funders
• Where the balance, if any, will come from (e.g., fundraising from individuals; earned income)

NOTE: After you get the hang of this, you can develop a template budget (including all the usual categories that constitute line items for you)–obviating the need to sit down with finance staff every time.

A budget narrative can be helpful in explaining each line item.

It also helps you to make sure your numbers add up (nothing will destroy credibility faster than a sloppy budget). For example, for travel expenses, add a note describing specific travel needs and costs; for staff, show the FTE multiplied by the hourly wage and hours worked. Besides checking and double-checking your math, you’ll also want to include a paragraph explaining how you’ll sustain this project once you no longer have foundation funding.

Your alignment with the funder’s mission and priorities

Most funders are quite explicit in their guidelines about what they’ll fund and won’t fund. You can also take a look at funders’ Form 990-PFs which give complete lists of grants awarded, including recipient names and amounts. Don’t rely completely on the past however, as priorities change.

When you send a misaligned proposal (either purpose or size), you undermine your credibility – both now and for the future.

So, be careful. If you have any doubts, place a phone call to the funder so you can talk out whether or not there is a good match. Funders are, after all, just people. Many will appreciate the fact you’re doing your homework. [Just don’t call them if they plainly state “no phone calls.”]

Hopefully these tips will help get a handle on next steps, so you find your land legs!

–Charity Clairity